Finance Minister, Dr. Nigel Clark, says the government’s excess rainfall policy with Caribbean Catastrophe Risk Insurance Facility, CCRIF, has been triggered.
He says this will result in a payout of $1.6 billion.
Minister Clarke made the announcement on Monday afternoon on his social media accounts.
He says this amount is additional to the $2.5 billion payout last week that was triggered by the government’s tropical cyclone policy.
Dr. Clarke credits the government’s cooperation with the CCRIF, for the payout Jamaica received following the passage of Hurricane Beryl.
Minister Clarke explained the policy changes while speaking Monday on Nationwide This Morning.
Mahiri Stewart has that report.
The Caribbean Catastrophe Risk Insurance Facility, CCRIF is the world’s first multi-country, multi-peril risk pool providing parametric insurance.
It was designed to limit the financial impact of catastrophic hurricanes and earthquakes by quickly providing short-term liquidity when a policy is triggered.
The Finance Minister announced last week that a payment of $2.5 billion from CCRIF was triggered due to the passage of Hurricane Beryl.
Speaking Monday on Nationwide This Morning, Minister Clarke explained that Jamaica’s original Tropical Cyclone Policy with CCRIF was done in a manner that weakened its effectiveness.
He adds that Jamaica’s new multi-layered CCRIF policy has increased the likelihood of a payout.
Minister Clarke explains that through the government’s negotiations with CCRIF, Jamaica has seen two pay outs in the past four years as opposed to one in thirteen years under the previous policy.
Meanwhile, Dr. Clarke says he does not think the passage of Hurricane Beryl will affect the government’s plans for the SPARK Programme.
The 40-billion dollar roadwork initiative will see each constituency receive $150 million to undertake necessary road improvement projects.
Dr. Nigel Clarke, Minister of Finance.
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